Stocks are sharply lower as the recent fears about global growth continue- that has also been the catalyst for the recent commodity slump (see copper). The World Bank cut its growth estimates for global growth for 2015, adding to the angst. The Euro got a boost after the EU’s top court said a bond-buying program by the ECB is “in principle” in line with European Union treaties. The US retail sales figure posted a much larger than forecast decline, and JPM’s earnings were a miss. At 9:30 AM CT we get the weekly EIA petroleum inventory report; crude oil stocks are expected to be around unchanged while both distillates and gasoline are expected to show a big build. At 1 PM CT we get the FOMC Beige Book for its Jan. 27-28 meeting.
March EMini S&P Futures: In last night’s Swing Trader’s Insight I labeled today a mean reversion day (LBR “Z” day). At this time I might look to buy if it rallies back above the previous overnight low of 1996.50. For now I would treat longs as a scalp only as the higher timeframe trend is down.
March EMini NASDAQ Futures: As with the Spoos, a “Z” day- watch the previous overnight low of 4116.75 as a reference price for a buy.
March T Bonds: Taylor Trading Technique Sell day; it’s a strong market as it rallied above the recent high of 149-08. We should likely anticipate a Sell Short day for Thursday; that should be a buying opportunity.
March Euro: Good rally on a Taylor Trading Buy day. 117.59 was the reference price and Monday’s high of 1.1878 is the next upside target.
Feb. Gold: Another market with a good rally on a Taylor Trading Buy day- I really like the long side of gold. Will it clear yesterday’s high of 1244.50?
March Sugar: Rallying on a Taylor Trading Sell day- will a move above the recent 15.17 high extend the rally?
March Cotton: Yesterday was an inside day and the longer timeframe trend is down- I would look to short a break below the 59.50 area.
March Crude Oil: The weekly inventory report is out at 9:30 AM. Play today as a breakout setup with the overnight high (47.03) and low (45.65) as reference prices. Don’t be afraid to short it just because it’s “cheap”.
Feb Live Cattle: The daily trend is down; I’m watching long term trend line support around 156.40.
March Soybeans: Watch the 10.00 area as a pivot point- can it bounce today?
March Corn: Taylor Trading Buy day; watch the overnight low of 379-0 as the reference price.
Essential Guide for Futures Swing Trading
In this guide, experienced trader and broker Scott Hoffman explains the trading methods he uses to analyze and trade the futures markets and to publish his trade advisory, Swing Trader’s Insight.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.